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Apple and Amazon Avoid Mass Lawsuit in UK Over Alleged Collusion

By  |  January 14, 2025

Apple and Amazon have successfully thwarted a large-scale lawsuit in the United Kingdom that accused the two tech giants of colluding to block independent resellers of Apple products on Amazon’s marketplace. The Competition Appeal Tribunal ruled on Tuesday that the case, which sought nearly £494 million ($602 million) in damages, could not move forward due to issues with the claimant’s ability to adequately represent consumers, according to Reuters.

The legal challenge was brought by Christine Riefa, a consumer law academic, on behalf of roughly 36 million British consumers who had purchased Apple or Beats products. The lawsuit alleged that Apple and Amazon entered into an agreement in 2018 to significantly restrict third-party resellers from selling Apple and Beats items on Amazon’s UK platform, which purportedly reduced competition and left consumers with fewer options.

Related: Amazon Must Face Antitrust Case Over Alleged Monopoly Practices

Apple and Amazon both denied the claims and argued that the case was baseless. They asked the tribunal to dismiss the lawsuit, which was at the initial certification stage, a procedural step necessary for collective proceedings to continue. The tribunal agreed with their position, stating that Riefa had not shown “sufficient independence or robustness” in managing the lawsuit’s funding arrangements, which the court deemed critical for representing the proposed claimant group.

Per Reuters, the tribunal’s refusal to certify the case is notable because the threshold for certification in such class actions is typically low. The decision effectively halts the case before it can proceed to the full litigation phase.

Neither Apple nor Amazon provided immediate comments following the ruling, and Riefa’s legal team also did not respond to requests for a statement, USA Today reported.

The case highlights ongoing scrutiny of large tech companies and their business practices, particularly concerning competition and marketplace dynamics. The lawsuit alleged that limiting resellers on Amazon’s platform ultimately harmed consumers by reducing their choices and potentially inflating prices for Apple products. However, with the tribunal’s ruling, those claims will not proceed to trial unless new legal avenues are pursued.

Source: USA Today

Federal Appeals Court Temporarily Halts Ruling in Consumer Bureau Battle Federal Appeals Court Temporarily Halts Ruling in CFPB Battle

Federal Appeals Court Temporarily Halts Ruling in Consumer Bureau Battle

By  |  April 3, 2025

A federal appeals court on Thursday temporarily put on hold a lower court ruling that had delivered a significant victory to government employees and consumer advocates opposing President Donald Trump’s efforts to curtail the Consumer Financial Protection Bureau (CFPB). According to Reuters, the decision maintains a temporary pause while the court considers an emergency request from the Justice Department to overturn the previous ruling entirely.

The U.S. Circuit Court of Appeals for the District of Columbia stopped short of reversing any provisions set forth by U.S. District Judge Amy Berman Jackson in her March 28 ruling. Per Reuters, her decision had ordered the CFPB to reinstate dismissed employees, restore canceled contracts, and continue performing its legally mandated duties. However, the appellate judges left in place interim measures preventing the administration from taking further action against agency staff or halting essential operations.

Despite the temporary stay, the three-judge panel emphasized that the decision should not be interpreted as an indication of their final ruling. “The purpose of this administrative stay is to give the court sufficient opportunity to consider the emergency motion for stay pending appeal and should not be construed in any way as a ruling on the merits of that motion,” the order stated, according to Reuters.

Related: CFPB Allows Some Operations to Resume Amid Legal Challenge

The Justice Department formally notified the court on Saturday of its intent to challenge Judge Berman Jackson’s order, seeking to overturn her directive that prevented the administration from erasing agency data, terminating employees, or discontinuing active contracts. The Trump administration’s moves against the CFPB began in February when the president dismissed the agency’s director and granted officials from Elon Musk’s Department of Government Efficiency extensive access to sensitive CFPB data systems. The actions resulted in widespread layoffs, contract cancellations, and office closures, prompting consumer protection groups and affected workers to file a lawsuit denouncing the changes as unlawful.

According to Reuters, agency leadership has since attempted to walk back some of these measures, a move Judge Berman Jackson described as likely “a charade for the court’s benefit.” While the appeals court’s temporary stay keeps aspects of the lower court’s ruling in place for now, the broader legal battle over the CFPB’s future remains unresolved.

Source: Reuters